Friday, July 19, 2013

FSM President Mori signs into law new tax reform deadline, “sunset clause”


From left: Governor Lyndon Jackson, Kosrar; Vice President Alik L. Alik, Speaker Dohsis Halbert, Governor John Ehsa, Pohnpei; Lt. Governor Ritis Heldart, Chuuk; Governor Sebastian Anefal, Yap. President Mori signing the law.

FSMIS (July 19, 2013): FSM President Manny Mori signed Congressional Act no 18-06 into public law earlier today after Congress passed the legislation in final reading yesterday, July 18. The signing was witnessed by FSM Vice President Alik L. Alik, Speaker Dohsis Halbert, FSM Congress, Governor John Ehsa of Pohnpei State, Governor Lyndon Jackson of Kosrae State; Governor Sebastian Anefal of Yap State and Lt. Governor Ritis Heldart of Chuuk State.

The new public law, designated Public Law no. 18-06, extends the “Sunset Clause” deadline under the Revenue Administration Act (RAA) from July 19, 2013 to September 30, 2013. It is the second change after it was first pushed back about three months ago.

In his signing message, President Mori said, “I wish to thank the 18th Congress for passing the act as this congressional act will grant more time for the States to thoroughly consider and approve the necessary legislation that will fully implement the tax reform”.

The State Governors and the Lt. Governor of Chuuk were in Pohnpei for the July 18 meeting of the Tax Reform Executive Steering Committee (ESC). The ESC is chaired by Vice President Alik, and it oversees the development and activities of the Tax Reform Program.

The States of Yap and Pohnpei have yet to pass their value added tax legislations in the manner expressed under the RAA sunset clause. However, Vice President Alik as Chairman of the ESC recently expressed hope that the States will find more time to maintain progress with the new deadline now in place.
The signing of the “extension legislation” ensures that works of over eight years are not discarded at the end of the day.

A little snack, keeping tax reform movement on the table for all five governments in the FSM

For further information, please contact the Tax Reform Program office at 320-2640/5852.

1 comment:

  1. That was really useful to me. Thanks for the indepth explanation.

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